The National Green Hydrogen Mission’s initial investment of Rs 19,744 crore was approved by the Union Cabinet on Wednesday. Prime Minister Narendra Modi announced a national mission for green fuels in a speech to the nation on its 75th Independence Day in 2021, in keeping with the Center’s declared goal of achieving energy independence for India before the country celebrates a century of independence. The mission’s four components will work to increase domestic production of green hydrogen and support the development of electrolysers, a crucial component in the creation of green hydrogen.
According to a statement from the Centre, the mission’s initial budget will consist of Rs 17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, Rs 1,466 crore for pilot projects, Rs 400 crore for research and development (R&D), and Rs 388 crore for other mission components. A 5 million tonnes (mt) annual production of green hydrogen is the initial goal. SIGHT will include two financial incentive systems for domestic electrolyser production and green hydrogen generation.
The mission will additionally support pilot initiatives in developing end-use industries and supply chains. Areas that can sustain large-scale hydrogen production and/or use will be found and developed as green hydrogen hubs. According to the government, a supportive policy framework will be created to aid in the development of the green hydrogen ecosystem. A strong framework for norms and rules will also be created. Additionally, the mission will assist the strategic hydrogen innovation partnership (SHIP), a framework for public-private R&D partnerships, according to the release.The green hydrogen/ammonia policy was announced by the Ministry of Power in February of last year, with a production goal of 5 mt of green hydrogen by 2030. In the last mission, the goal is still there.
Video Courtesy: The Economic Times
Manufacturers of green hydrogen/ammonia are allowed to either start their own green energy projects or buy green energy from energy exchanges, according to a policy created by the Ministry of Power. The policy offered a number of exceptions, including those for interstate transmission fees, the simplicity of obtaining open access, and transmission connectivity. From cutting-edge renewable energy firms to vehicle manufacturers, every major business with an interest in the energy sector has declared either investment or consumption plans for green hydrogen.
Investment intentions have been disclosed by Adani Enterprises, Reliance Industries, Tata Group, JSW Energy, Larsen & Toubro, ACME Group, ReNew Power, and others. India’s top commercial vehicle maker, Ashok Leyland, is considering a partnership to run a portion of its fleet on green hydrogen. However, the industry has been requesting government assistance due to the high price of electrolysers and the overall expense of producing green hydrogen. Green hydrogen is currently priced in the nation at about $5 per kilogram.
The incentive programme boosts the competitiveness of the Indian green molecule. This is necessary for the first few projects and to develop green hydrogen hubs, which will enable the establishment of supply chains and an increase in production volume. Several countries have developed green hydrogen support and subsidy programmes, according to Rajat Seksaria, CEO of ACME Group.
The nodal department for the mission will be the Ministry of New and Renewable Energy. To meet the 5 mt target, it is expected an associated renewable energy capacity of close to 125 gigawatt will be required. The Centre expects close to 50 mt per annum of carbon emissions to be averted by 2030.
Why is there a sudden surge of interest around green hydrogen?
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